Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

Exercise 11

Rett Publishing has a standard wage rate of $23 per hour. Direct labor hours are used to allocate overhead to various publishing jobs. Fixed overhead is budgeted at $2.8 million and variable overhead is $19 per direct labor hour. The following data summarize the results of operations for March:

Required:
a. Calculate the overhead efficiency variance for March.
b. What was the total number of standard direct labor hours for March